The DOI matches its Crossref record; 80 of the 80 references it cites were found in a registry or an index.
Swinging for the Fences: The Effects of Ceo Stock Options on Company Risk Taking and Performance
Abstract
We unpack the concept of managerial risk taking, distinguishing among three of its major elements: the size of an outlay, the variance of potential outcomes, and the likelihood of extreme loss. We then apply our framework in hypothesizing the effects of CEO stock options on strategic behavior and company performance. We find that CEO stock options engender high levels of investment outlays and bring about extreme corporate performance (big gains and big losses), suggesting that stock options prompt CEOs to make high-variance bets, not simply larger bets. Finally, we find that option-loaded CEOs deliver more big losses than big gains.
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Cites
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Theory of the firm: Managerial behavior, agency costs and ownership structure
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Longitudinal data analysis using generalized linear models
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Theory of games and economic behavior
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Advances in prospect theory: Cumulative representation of uncertainty
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Agency Theory: An Assessment and Review
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Cited by
A Multi‐Dimensional Framework of Organizational Innovation: A Systematic Review of the Literature
Crossan, M. M., & Apaydin, M. (2010) · Journal of Management Studies · doi:10.1111/j.1467-6486.2009.00880.x · Cited by 3,244
Chatterjee, A., & Hambrick, D. C. (2007) · Administrative Science Quarterly · doi:10.2189/asqu.52.3.351 · Cited by 2,074
Self-citationCEO Hubris and Firm Risk Taking in China: The Moderating Role of Managerial Discretion
Li, J., & Tang, Y. (2010) · Academy of Management Journal · doi:10.5465/amj.2010.48036912 · Cited by 1,082
Human Capital Is Dead; Long Live Human Capital Resources!
Ployhart, R. E., Nyberg, A. J., Reilly, G., & Maltarich, M. A. (2014) · Journal of Management · doi:10.1177/0149206313512152 · Cited by 560
Motivated to Acquire? The Impact of CEO Regulatory Focus on Firm Acquisitions
Gamache, D. L., McNamara, G., Mannor, M. J., & Johnson, R. E. (2015) · Academy of Management Journal · doi:10.5465/amj.2013.0377 · Cited by 458
Metadata
- Authors
- Sanders, W. G., & Hambrick, D. C.
- Venue
- Academy of Management Journal
- Publisher
- Academy of Management
- Published
- 2007-10
- Volume
- 50
- Issue
- 5
- Pages
- 1055-1078
- ISSN
- 0001-4273 (ISSN-L)
- 1948-0989
- OpenAlex
- W2062166883
- Cited by
- 757
- References
- 80
- FWCI
- 66.88
- Type
- journal article
- Language
- en
- Open access
- closed
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
